Aragon DAO has voted to support legal action against its founders
A decentralized autonomous organization (DAO) is taking legal action against its founding team after it decided to dissolve its governing body and distribute most of its assets to patients.
On November 2, the group behind Aragon announced the dissolution of the Aragon Association. By deploying the company's treasury, the group stated that ANT token holders can redeem Ether (ETH) in exchange for their tokens. The update returns approximately $155 million worth of digital assets to stakeholders.
Citing various reasons, the group behind Aragon closed the ANT token and dissolved it without consulting its governing body Dao. This has angered a faction in the community which has expressed deep displeasure at the act.
This is so crazy.
@AragonProject DAO voted yes to directly sue Aragon Group for unfair redemption offer
Could this be the first time Dao has paid to be legit by his own team? pic.twitter.com/bP27niQx1V
— DCF GOD (@dcfgod) November 21, 2023
On November 21, the DAO voted to allocate 300,000 USD Coin (USDC) to Patagonia Management, a Delaware-based company, to take legal action against Aragon. The firm will lead the negotiations and prosecution of the Aragon Group.
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According to the proposal, this would “return a proportionate amount of dead token funds to those who took pro-rata and not taken from these previous tokens.”
The approved proposal would allow Patagonia to maintain confidentiality with respect to legal process and the ability to decide on a legal strategy. However, all of Patagonia's financial transactions related to the matter will be in public records. Patagonia stores the funds in a wallet address and bank account separate from the company's business accounts.
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